Often goods indigenously manufactured when exported are returned back
for various reasons including cancellation of export order or after
exhibition/display etc., these are returned or the machinery etc., is returned
after use in particular project/contract and completion of the contract etc.
Imported goods which may have discharged duties at the time of original
importation have also to be often sent out for repair, reconditioning etc.
Private, personal imported property may also have to be sent abroad for repair
within the warranty period and returned. There are also goods which may have to
be sent for special processes like electroplating, polishing or coating and
re-imported.

It is to be noted that under Section 12 on import duties of Customs are
leviable and no distinction is made whether the goods being imported had
discharged duties earlier and they are being re-imported after exportation
for particular purposes. Similarly, even if goods are indigenously
manufactured which had been exported earlier under various export incentive
schemes or duty drawback claim or even without any export incentive claim,
when these are re-imported they attract and have to discharge the customs
duty leviable on like import goods (as the duty is on the act of
importation) unless an exemption is issued.

To avoid repeat total duty on the full value of the imported goods when
sent abroad for repairs, certain relief from duty liable has been provided.
Similarly, where the goods are indigenously manufactured the basic intention
is that when re-importation is effected on customs clearance for consumption
in the market, they should bear the Central Excise duties which are
otherwise leviable and which may not have been discharged at the time of
exportation. Further, the exporters shold not get away with any benefits
which may have been given as an export incentive and these benefits should
be recovered by way of duty. Exemption notification has been issued under
Notification No.94/96-Cus. dated 16.12.1996 covering re-importation of
indigenously manufactured goods under duty drawback/rebate claims export
under bond or under other export incentive claims and the same may be
referred to. Thus, certain duties have to be paid equivalent to the export
incentives etc., on re-importation. It is only where the goods were exported
earlier on payment of Central Excise duty, without claiming any rebate, and
without claiming any export incentives such as duty drawback or benefits of
the duty exemption schemes, EPCG scheme or under DEPB scheme and where the
indigenously manufactured goods are being returned that no customs duties
are leviable.

Where the indigenously manufactured goods are exported for repair and
returned without claiming any benefits as provided in the said notification,
duty is to be paid on a value comprising fair cost of repairs including cost
of materials used in repairs, insurance and freight charges both ways.

For availing the benefit of the said notification the Assistant
Commissioner has to be satisfied that the goods are the same which were
exported earlier and certain other conditions as laid down in the said
notification.

Where the gods manufactured in India or parts thereof are re-imported
into India for repairs or reconditioning or reprocessing/refining/remaking
etc., and returned, complete exemption from the import duties leviable is
available in terms of notification No.158/95-Cus dated 14.11.1995 if the
re-importation takes place within a specified period, the goods are
re-exported within six months of re-importation, the Assistant Commissioner
is satisfied as regards the identification of the goods and certain other
conditions for ensuring re-export (including execution of bonds etc.) are
fulfilled.

A separate exemption notification also has been provided to take care of
re-importation of the private personal property which was imported earlier
but exported out for any alteration, renovation, repair free of charge etc.
If the goods are repaired on free of charge basis in accordance with the
terms of warranty given by the manufacturers and in accordance with the
established trade practice and subject to certain laid down conditions about
non-availment of any drawback or other facilities, the whole duty of customs
is exempted in terms of notification No.174/96-Cus. However, if any
alterations, renovations or additions or repairs executed subsequent to
their export, certain custom duties are payable equivalent to the cost of
alterations/renovations/additions.

There are often occasions where imported goods may have to be re-exported. Such
situations arise where the import goods found defective after customs clearance
or these are not found according to specifications or requirements of the Indian
consignee. Various machinery items after import for use in certain projects or
otherwise are also often sought to be re-exported by the original owner.
Re-exports can be made by sea, air, baggage or post.

Section 74 of the Customs Act provides for grant of 98% of the Customs
duties leviable at the time of importation, by way of Drawback if it is
re-exported by the importer, subject to laid down conditions to be
satisfied. The re-export is to be allowed within two years from the date of
import – (which period can be extended on sufficient grounds being shown)
and goods have to be identified with the earlier import documents and duty
payments - to the satisfaction of the Assistant Commissioner at the time of
export. If such goods have been used in India after importation, refund is
granted on a proportionate basis under Notification No.19/95-Cus dated
6.2.1995, as amended, and there being no refund admissible if the goods have
been used after the re-importation which have been out of customs control
for more than 36 months after the date of clearance for home consumption and
the date when the goods are placed under customs control for export. For
specific categories of goods as mentioned in notification if these are used
no drawback of the import duty paid is permissible. In respect of motor
vehicles imported for personal and private use drawback formula is slightly
different and same is calculated by reducing the import duty paid according
to the laid down percentage for use for each quarter or part thereof, but
upto four years of use.

Exim Guide

The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our
Terms of Use
and
Privacy Policy
before you use this
Export Import Data
Directory.